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In New Delhi, a cut of less than 1 percentage point means that petrol will cost 77.83 rupees/litre on Wednesday, while diesel will be sold at 68.75 rupees/litre.
Fuel prices vary from state to state due to local taxes.
Domestic petrol and diesel prices touched a record high on Friday.
Petrol and diesel prices in India are linked to Singapore gasoline prices GL95-SIN and Arab Gulf diesel prices GO-AG, which mostly track movements in crude oil prices LCOc1.
Oil prices fell to about $75 a barrel as Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014.
India’s three state-run fuel retailers – IOC, BPCL and Hindustan Petroleum Corp – control most of India’s fuel retail market and tend to move their fuel prices in tandem.